123Pune.com

BANGALORE: Bangaloreans, who have been subjected to frequent power cuts during the last few days due to shortage of power, can heave a sigh of relief in the days to come as the Bangalore Electricity Supply Company (BESCOM) has finalised the “Pune model” of roping in captive private projects (CPPs) to generate electricity during peak hours.

But the relief comes at a cost! Consumers will have to pay an extra cost, over and above the existing tariff.

The BESCOM, which has finalised the Pune Model in consultation with the Confederation of Indian Industries (CII), would submit it before the Karnataka Electricity Regulatory Commission (KERC) in a few days for its approval.

While the CII is learnt to have given its nod, the premier industry and commerce body in the state -the Federation of Karnataka Chamber of Commerce and Industry- is said to have opposed it.

Under the Pune Model, the industrial units would be asked to draw power from their CPPs during peaks hours, thus giving the electricity grid a relief. It is estimated that in Bangalore about 250 MW can be produced by the CPPs which can be used to meet out the requirement of other categories of consumers.

“When the model is implemented, there will be immediate relief to consumers and there will be no load shedding during the peak hours between 6.30 pm and 9.30 pm in Bangalore,” the sources informed this website's newspaper.

Since generating power through gen-sets is a relatively expensive proposition for industries, the BES COM is working out a formula to reimburse the industrial units the differential cost -the difference in cost of running CPPs and the electricity bill. “We can’t disclose the details at this stage as they are being worked out. But following the implementation of Pune Model, there will be a bit of increase in tariff for all categories of consumers who will be required to pay the reliability charges,” BESCOM sources informed. In Pune, consumers are charged an extra 50 paise per unit.

Despite differences among the CII members, they are said to have given the green signal for the Pune Model. But the FKCCI is learnt to have raised serious objection to the implementation of Pune Model in the City.

Many industrialists The Express spoke to are of the view that if implemented, the Pune Model would eat into their profit. “What is in force is th 2005 Tariff Order as the BESCOM has challenged the multi-year tariff for 2008, 2009 and 2010 before the Appellate Tribunal for Electricity. The 2008 tariff order reduces the tariff for HT consumers by about 35 paise per unit. By default, the 2005 tariff order is in force and the BESCOM wants to revise the tariff based on the existing tariff. It amounts to regularising the 2005 tariff order,” an industrialist remarked.

Industrialists feel that when there is already an order- Harnessing the Captive Generation in Karnataka-, there is no need for another one.
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